A Major Purpose of Tort Law Is To

question 357

Multiple Choice

A major purpose of tort law is to:

• A) replace the insurance industry
• B) provide compensation for injured parties by wrongdoers
• C) impose criminal penalties on the negligent
• D) ensure Equal Protection of the 14th Amendment is operational
• E) ensure the effective operation of the Due Process Clause

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Definitions:

Partnership Income

Earnings distributed to the partners of a partnership from the business, which is reported on their personal income tax returns.

Basis

The amount paid for an asset or investment, used to calculate gain or loss for tax purposes.

Active Participation

Involvement in making management decisions and the right to make significant and bona fide contributions to the operating and financial management of an activity.

Material Participation

A taxpayer's active and regular involvement in the operations of a business to qualify for certain tax benefits.